Getting RMB in 北京

[waiguoren]

Hello everyone,

I will be in 北京 this summer and have been trying to find the cheapest way to convert USD to RMB. I have about $800 that I would like to convert as needed throughout the summer.

I read many old threads on this topic and was turned on to the Bank of America-建行(CCB) partnership. I could open a checking account with BoA, transfer my $800 into that, then withdraw using 北京 ATMs. I determined I would be charged 1% on each such withdrawal. Bank of America says no further fees are assessed.

Of course I am wary of exchange rate shenanigans, so I harassed BoA representatives until they finally quoted me an approximate rate: 6.08 RMB/$. The official XR is about 6.82 today, so the hidden XR fee seems to be >1%.

First question: is there a cheaper, more convenient way to convert my holdings to USD? I know it may seem that I am splitting hairs, but after doing this much research I'm genuinely curious to learn more.

Also, does anyone here have experience with street (unauthorized) money changers? Of course everyone says to be very careful with these people, but I'd like to know if it's at least POSSIBLE to do honest business with them.

Any other suggestions are greatly appreciated!

[roddy]

There are (or at least were) shops around Sanlitun which would do black-market money changing. But I don't know any specifics, and this is going back a few years now - it's currently much easier for Chinese people to change money themselves, so there's maybe no demand for their services. Similarly you used to get money changers around the foreign exchange desks of Banks of Chinas. Now, I don't know. I doubt there's much of a percentage in using them if they still exist, and even if there is, on USD800 that percentage isn't going to add up to much.

BOC rates are here.

[abcdefg]

I've used the unauthorized ("black") money changers that one sees near major BOC branches as recently as late last year, but stopped because the rate was no better than what I could get inside the bank. The main advantage I could see was avoiding the long waiting line inside the bank. The obvious disadvantage was that you can be given bogus bills. Need to be real sure you can recognize fakes if you want to try to use their illicit services. I concluded that, all in all, it was not worth it to me. My experience was in Kunming, not Beijing, so this doesn't precisely address your question.

Edited May 6, 2009 at 08:56 AM by abcdefg
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[gato]

I read many old threads on this topic and was turned on to the Bank of America-建行(CCB) partnership. I could open a checking account with BoA, transfer my $800 into that, then withdraw using 北京 ATMs. I determined I would be charged 1% on each such withdrawal. Bank of America says no further fees are assessed.

I don't think there's a fee for this:

http://www.paymentsnews.com/2006/03/bank_of_america_1.html

Beginning April 1, 2006, Bank of America customers traveling to China will have free access when using debit or ATM cards to withdraw cash from more than 11,000 foreign-enabled China Construction Bank ATMs.

I've made the withdrawal many times and haven't seen any fees on my BofA statements.

I just made a withdrawal at a Construction Bank ATM on May 1, and the exchange rate applied was 6.808.

Edited May 6, 2009 at 09:33 AM by gato

[abcdefg]

Addendum:

Must also confess that those few times I changed money the black market way, I felt decidedly uneasy and somewhat stupid. My mind filled with unpleasant “what ifs.” What if this was the one day of the year the local gendarmes tried to impress a visiting official by staging an undercover bust to enforce an obscure statute forbidding unauthorized currency exchanges? Was my spectacular saving of 37 cents and 20 minutes waiting time worth 4 months of “re-education through labor” or the loss of my ability to obtain a China visa for the next 10 years?

[flameproof]

I would:

1. Open an account with ICBC, incl. getting online access and a Union Pay card

2. Give them the US$ and put them into the account as RMB

Now you can get your RMB free of charge from ICBC ATMs in BJ.

I don't think there is a big difference between the "black market" and the official bank rate. There was a big difference when we still had FEC, but that's a while ago. If you change "unofficially" make sure that you can identify genuine RMB from fake ones.

I just made a withdrawal at a Construction Bank ATM on May 1, and the exchange rate applied was 6.808.

That's a very good deal. Just remember that even with a Chinese bank card you get only free money withing the same city. Getting money from other banks ATM or outside your city still has fees, even with a local bank card.

[waiguoren]

Thanks everyone for the very helpful replies.

roddy, do you use BofC? I assume at least some fees would be assessed for changing USD to RMB. If the exchange rates you linked to are available to everyday travelers, and the fees aren't too bad, it seems comparable with BofA-CCB.

abcdefg, thanks for giving your experience. I'm surprised the rate was no better on the black market.

gato, this is very interesting. I called the BoA foreign exchange department yesterday and was told there would be a 1% withdrawal fee. Three other reps. (not from FX department) told me the same. As for the link you sent, I was under the impression the "free withdrawals" thing was a pilot program in 2006-2007 and that it has since ended. Your story seems to conflict with that, so I'll call BoA again to find out. The exchange rate is also vastly better than what I was quoted. Maybe the rep. confused "6.80" with "6.08".

flameproof, what sort of exchange rate are you charged through ICBC? Thanks for the advice on bank cards; I didn't realize that.

[flameproof]

flameproof, what sort of exchange rate are you charged through ICBC?

I only deal in RMB. I have never input any US$. But I presume that the exchange rate will be "fair". I mean, you talk about $800 , if you get RMB 1.00 more or less won't kill you.

I usually get my RMB from friends in CN with too much RMB - and I then transfer the equivalent to their bank account in their native place (if I have a bank account in that country that is). I get RMB, they save a hefty wire transfer fee and currency exchange hassle.